America has problems, but America is NOT THE PROBLEM!~
this is why they are poor and will stay that way.
Published on September 19, 2005 By Moderateman In US Domestic
Government credit cards for Katrina expenses draw scrutiny


The Associated Press
September 18, 2005



WASHINGTON – Lawmakers and watchdog groups worry that allowing federal employees to charge up to $250,000 on their government-issued credit cards for Hurricane Katrina-related expenses will lead to a repeat of past abuses.

Some of the cards in the past were used to pay for prostitutes, gambling activity, even breast implants, government audits have shown.

“People are concerned this is a risk,” said Greg Kutz, managing director of special investigations at the General Accountability Office, which conducts audits at the request of Congress.

About 250,000 federal employees have government credit cards, which typically have a purchase limit of $2,500. At the request of the Bush administration, Congress increased the credit line to $250,000 as part of a massive Katrina recovery bill approved last week. The aim is to make it easier to speed aid to victims.

Senate Finance Committee Chairman Charles Grassley, R-Iowa, said the “outrageous increase” was “slipped” into the bill. He is seeking to insert language in a Katrina health bill that would reduce the limit in most cases to $50,000.

Responding to initial criticism, the White House issued new guidelines this week saying agencies must designate in writing which of their staff will receive the new spending privileges. Purchases of more than $50,000 must be pre-approved by a senior manager.

“Substantial financial controls already exist but we are currently looking at what additional protections might be useful. If in working with Congress, agencies, and state and local leaders it is determined that additional safeguards are required, then we’ll put them in place,” Alex Conant, spokesman for the Office of Management and Budget, said Wednesday.

Critics say the additional oversight is needed because the cards offer special opportunities for abuse.

Purchases are billed directly to the government, making it difficult to recover losses from wayward federal employees intent on fraud because of the time lag from the purchase date to subsequent billing.

Cronyism also is a danger, as officials have more leeway under the higher limit to purchase more expensive supplies from politically connected companies without the benefit of open bidding and competition. Even if they’re detected, time-strapped agency directors often don’t pursue disciplinary action, according to audit reports.

In recent years, several GAO audits found hundreds of thousands of dollars of improper expenditures at the Pentagon and other agencies, from purchases of remote control helicopters and airline tickets to Palm Pilots and $2,500 flat-panel computer monitors. Someone even bought a dog.

Navy personnel also in 2002 used separate government travel cards to hire prostitutes at brothels, gamble and attend New York Yankees and Los Angeles Lakers games. One civil employee ran up nearly $35,000 in personal expenses over two years, including breast enlargement surgery for his girlfriend.

The GAO has noted improvements in agency oversight since then, including reducing the number of government cards from more than 500,000 to 250,000 to limit the potential for fraud from lower-level government employees. The Pentagon also has said it has installed software to help track when potentially suspect purchases are made.

But as recently as last year, the GAO cited continuing oversight problems at the Veterans Health Administration and said it had no way of knowing _ without conducting specific audits _ whether improvements at other agencies are actually in effect and working.

The concerns prompted Grassley, as well as Senate Homeland Security Committee Chairwoman Susan Collins, R-Maine, and Connecticut Sen. Joe Lieberman, the top Democrat on that committee, last week to urge congressional leaders to officially lower the cap to $50,000 to ensure full compliance.

Collins has also signaled separately she might consider creating a special inspector general to monitor spending and no-bid contracts.

“Imagine the fraud we could see,” said Danielle Brian, executive director of the watchdog group Project on Government Oversight, noting that recent abuses involved cards with much smaller purchase limits of $2,500.

“For bigger purchases involved in the rebuilding effort, that should involve competition and serious planning. Instead we have far too many people with far too much access to money without any organization or effective oversight,” she said.

also along with this, the 2,000 credit cards being handed out in New Orleans are being used for lap dances, booze and other "necesssities the "POOR" are buying. oh yes do not forget the much needed louis viton handbags being bought with our tax dollars.

What stupid idiot thought it was a good idea to hand poor folks 2 grand?

This is why the poor will stay that way. gimmee is the watchword for the day.

makes me sick!!!


"

Comments (Page 1)
2 Pages1 2 
on Sep 19, 2005
Here's the dilemma: There are lots of people displaced. No home, no savings, few, if any, possessions. Many may have quite a bit of debt. They are in a position to start their lives over from scratch (the blessing). They have to start their lives over from scratch (the curse).

Do you deny everyone the opportunity to replace a few items of clothing, make a deposit on a place to live, and buy food until they can acquire steady income, knowing that many will put this meager sum to good use?

Or...

Do you provide everyone with the opportunity to replace a few items of clothing, make a deposit on a place to live and buy food until they can acquire a steady income, knowing that many will waste this money on luxury items and still be unable to support themselves when the money is gone?

Two thousand dollars is not a lot. If spent poorly, it's a designer bag and nice dinner out. If spent wisely, it's a few weeks of modest eating, a few sets of durable work clothes, a month's rent and maybe some replacements for lost household items.

Many people will inevitably waste it. Is it worth the expense and waste to help those few that put it to good use get back on their feet?
on Sep 19, 2005
#1 by Texas Wahine
Monday, September 19, 2005


Here's the dilemma: There are lots of people displaced. No home, no savings, few, if any, possessions. Many may have quite a bit of debt. They are in a position to start their lives over from scratch (the blessing). They have to start their lives over from scratch (the curse).

Do you deny everyone the opportunity to replace a few items of clothing, make a deposit on a place to live, and buy food until they can acquire steady income, knowing that many will put this meager sum to good use?

Or...

Do you provide everyone with the opportunity to replace a few items of clothing, make a deposit on a place to live and buy food until they can acquire a steady income, knowing that many will waste this money on luxury items and still be unable to support themselves when the money is gone?

Two thousand dollars is not a lot. If spent poorly, it's a designer bag and nice dinner out. If spent wisely, it's a few weeks of modest eating, a few sets of durable work clothes, a month's rent and maybe some replacements for lost household items.

Many people will inevitably waste it. Is it worth the expense and waste to help those few that put it to good use get back on their feet?


you are just so sweet and thoughtful tex, hope HE knows what a treasure you are.

No you give these morons chits for food, clothing, a government certificate for a place to live.

Feed them for sure cloth them yes, get them as place to live yes, give them what in essence is CASH, IS STUPID.
on Sep 19, 2005
Have to agree with MM a bit in his comments directly above. Handing cash to people that have little or no wealth is stupid. Most of the people that were supposed to have gotten these $2k debit cards haven't seen $2k in a long, long time.

Give them vouchers for food, clothing, and shelter, and make sure to keep track of the bill as you go.

Much the same as the government credit cards that MM's original article references above -- such cards are abused over and over again, in virtually every facet of the government (Defense, Civilian, etc.)

And lowering the limits back to $50k isn't going to help that much either. If the limits are at a reasonable level, they're at a great level to be abused, and someone will do it, thinking they can get away with it during a time when the paperwork is taking months to catch up.

No matter how well you train people, tell them that their purchases are traced and tracked, make them sign stacks of paper that say they know the rules on the use of the cards, know that they are responsible for the purchases, etc., some fool abuses the system. In fact, many fools abuse the system, and basically ruin what should be a good thing.

Have the government make arrangements with say 84 Lumber, Home Depot, Lowes, Sears, K-Mart, Wal*mart, Albertsons, Tom Thumb, Safeway, Winn-Dixie, etc., and give the people that need help a way to get it, but for god's sake, don't just hand them free money and tell them to go live it up. The money will be wasted away, and then the victim will be demanding more and crying because they weren't helped at all.
on Sep 19, 2005
#3 by terpfan1980
Monday, September 19, 2005


No matter how well you train people, tell them that their purchases are traced and tracked, make them sign stacks of paper that say they know the rules on the use of the cards, know that they are responsible for the purchases, etc., some fool abuses the system. In fact, many fools abuse the system, and basically ruin what should be a good thing.

Have the government make arrangements with say 84 Lumber, Home Depot, Lowes, Sears, K-Mart, Wal*mart, Albertsons, Tom Thumb, Safeway, Winn-Dixie, etc., and give the people that need help a way to get it, but for god's sake, don't just hand them free money and tell them to go live it up. The money will be wasted away, and then the victim will be demanding more and crying because they weren't helped at all.


well thought out, I hope some government lout sees this.

what wonderful sense, the poor get ALL they need with little or no waste and abuse. insightfull terp.
on Sep 20, 2005
Reply By: little_whipPosted: Tuesday, September 20, 2005


Agreed. The poor are poor for many reasons, but the majority of them are poor because of their own lack of responsibility, inability to make good decisions, or due to drug and alcohol abuse.No amount of cash is going to help these people, they will piss it away and be in worse shape than they were before.But hey, at least some of them will have a nice purse.


what gets me is after their spending binge, and they are all out of money. they will have their hand out again, and the liberals will make sure their hands do not stay empty for long.
on Sep 20, 2005

I don't understand why there needs to be larger government credit cards.  Why isn't a invoice paid by a check workable (like "businesses" are run)?  If private businesses can function on low credit card limits and a checks and balance system for larger expenses, why can't the government?  I can guarantee that paying for staff to monitor the spending, which would create new jobs, would be more cost effective than dealing with all the fraud.

As or the $2,000 debit cards- that's simply stupid.  With all the expense and effort, they could have opened food co-ops for the victims and set up a system to get people into housing.  Why couldn't they have a system where the apartment complex (or whatever person was renting) sent a fax to a "housing relief" office.  The office then issued a check for an equal amount (to keep people from renting beyond their means) to cover whatever it could?

If this money is truly to "help" people, we need to make sure it is used that way.  I have no problem with thinking that the tens of thousands of dollars that my husband and I pay in taxes each year are used for the better good of our country, but I really get pissed off when I hear about how much of it is used for "wants" instead of "needs".

"Get to work!  Millions on welfare depend on you!" <- favorite bumper sticker

on Sep 20, 2005



on Sep 20, 2005
"Get to work! Millions on welfare depend on you!" <- favorite bumper sticker


Love it! Where can I get one?


You can get it here:

Link

Do a search off the top blue bar using welfare as your search parameter. It'll be the 5th one down on the list.
on Sep 20, 2005
Reply By: KarmaGirlPosted: Tuesday, September 20, 2005I don't understand why there needs to be larger government credit cards.


me either karma, and to compound it by giving 2,000 debit cards to ner-do-wells is just plain nuts.
on Sep 20, 2005
Reply By: Island DogPosted: Tuesday, September 20, 2005


cool slogan and picture dog, you be da man!!
on Sep 20, 2005
Reply By: drmilerPosted: Tuesday, September 20, 2005"Get to work! Millions on welfare depend on you!" Love it! Where can I get one?You can get it here:


we should buy a bunch of them and have a rally at the democrapick convention.

Let every hard working family see where most of there taxes go.
on Sep 20, 2005
Damned if you do, damned if you dont. The $2000 was in response to not getting help there fast enought, and now they are getting (rightfully so) crap for it. The $250k is not really an issue as that will be carefully audited.

But the same mentality that is blaming Bush for not having 10, 000 troops on the ground at ground zero are now the ones slamming him for the $2k debit cards and yes the Louis Viton Purses.

Damned if you do, and damned if you dont. Nice to see the liar, Billy C, chiming in on the band wagon too. I thought I might actually start to respect him. Thank god he made sure I never would.
on Sep 20, 2005
Most of the people that were supposed to have gotten these $2k debit cards haven't seen $2k in a long, long time.


Which is exactly why they've been buying designer jeans, purses that I'll never be able to afford or justify buying and why they've been whooping it up in titty bars and buying beers.

Louis Vuitton purses aint going to give a person much shelter from the rain, that's for sure.
on Sep 20, 2005
14 by Awed in Space (Anonymous user)
Tuesday, September 20, 2005


But the same mentality that is blaming Bush for not having 10, 000 troops on the ground at ground zero are now the ones slamming him for the $2k debit cards and yes the Louis Viton Purses.

Damned if you do, and damned if you dont. Nice to see the liar, Billy C, chiming in on the band wagon too. I thought I might actually start to respect him. Thank god he made sure I never would.


AH YES the ever whining left... if bush does something, he did not do it fast enough, If he does it very very fast , he is showboating for a photo op. damned no matter what he does.
on Sep 20, 2005
16 by little_whip
Tuesday, September 20, 2005


WooHoo...I found the best one yet.

"CHOOSE TO KEEP YOUR LEGS SHUT"

bwahahahaha!


unless they use the magic word,

{yer gonna have to ask what the magic word is] HEH
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